Page 13 - EurOil Week 19 2021

EurOil PROJECTS & COMPANIES EurOil

Shell files environmental assessment

for Jackdaw project

UK ROYAL Dutch Shell has filed an environmental take place, with first production anticipated in
assessment with authorities for the Jackdaw field the third or fourth quarter of 2024.
An FID on Javkdaw is in the UK North Sea, bringing the delayed pro- The field, discovered in 2005 and appraised
now on track for later ject one step closer to a final investment decision between 2007 and 2012, is estimated to hold
this year. (FID). between 120-250mn barrels of oil equivalent
The operator already submitted an environ- (boe).
mental assessment for the field in January last Shell is opting to generate electricity at the
year, but the project was then postponed as a NUI using an onsite diesel generator, accord-
result of the coronavirus (COVID-19) pan- ing to the environmental statement, which will
demic. As such, it had to be refiled. result in “incremental emissions.” However, the
An FID on Jackdaw, originally anticipated statement notes that it has been “future-proofed”
in the second quarter of 2020, is now on track for “viable electrification opportunities” should
for later this year. The field, some 250 km from they arise.
Aberdeen, will be developed via a normally Operators across the UK North Sea shelved
unmanned installation (NUI) tied to Shell’s FIDs on projects last year as the pandemic took
Shearwater production hub some 32 km away, its toll on oil and gas prices. The market is now
helping to extend the latter’s life. recovering, however, as evidenced by a recent
Installation of the NUI’s jacket and topsides, flurry of M&A deals in the region. Approvals
and an export pipeline, is due to be carried out are also expected in the coming months at Har-
between the third quarter of 2022 and the first bour Energy’s Tolmount East gas field and Siccar
quarter of 2024. The drilling campaign will then Point’s Cambo project. ™

Serica’s Bruce field

gets extra life

UK NORTH Sea-focused Serica Energy has for BKR with the previous owners will end. Cur-
extended the life of its flagship Bruce gas field rently Serica receives only 60% of net cash flow
The announcement out to 2030, marking its second extension since from the fields.
follows a reserve report. the company acquired the asset in 2018. Its shut- “Whilst we see significant benefits and
down was originally scheduled for 2026. potential in our existing portfolio, [we] con-
A new competent person’s report (CPR) tinue to look at new opportunities to expand
has determined Bruce’s remaining recoverable our operations to diversify risk, provide new
hydrocarbon reserves at 61mn barrels of oil growth prospects and achieve economies
equivalent (boe). They were assessed at 62mn of scale,” Flegg said in the company’s annual
barrels in January 2020, even though 8mn bar- report published last week. “We are confident
rels have been extracted since then. The resource that we have the resources to deliver this strat-
upgrade and lower breakeven costs have given egy and the platform to create additional value
Bruce extra time, Serica said. for shareholders.”
“In the last two years we have extended cessa- Serica earned GBP12.5mn ($17.5mn) in pre-
tion of production by a total of four years,” Serica tax earnings in 2020, despite a dramatic slump in
CEO Mitch Flegg commented. “This is a clear sales as a result of the pandemic. It decided last
indication that our Bruce, Keith, Rhum (BKR) year to exit Namibia in order to increase its focus
life extension strategy is being successful.” on the North Sea. It operates and owns 98% of
Serica acquired the BKR fields in 2018 Bruce, 100% of Keith and 50% of Rhum. It is
through deals with BP, France’s Total, Australia’s partnered at the latter asset with Iran’s national
BHP and Japan’s Marubeni. The end of this year oil company, NIOC.
will be a “huge milestone” for Serica, the com- The company’s other key asset is the North
pany has noted, as a cash-sharing arrangement Eigg gas prospect situated near BKR. ™

Week 19 13•May•2021 www. NEWSBASE .com P13